ASML Holding: ASML confirms 2013 outlook and sees H2 2013 sales levels continuing in H1 2014

    ASML Holding: ASML confirms 2013 outlook and sees H2 2013 sales levels
                            continuing in H1 2014

VELDHOVEN, the Netherlands, 16 October 2013 - ASML Holding N.V. (ASML) today
publishes 2013 third-quarter results.

  *ASML reports Q3 2013 results as guided and confirms a 2013 full year net
    sales outlook of up to EUR 5.2 billion, including Cymer
  *ASML guides fourth-quarter net sales at around EUR 1.8 billion, gross
    margin at between 43 and 44 percent, including accounting impact from
    Cymer acquisition
  *ASML sees H1 2014 sales at similar levels to H2 2013, excluding EUV
    

(Figures in millions of euros unless otherwise indicated)      Q3 2013 Q2 2013
Net sales                                                        1,318   1,187
...of which service and field option sales                         359     271
Other income (Co-Investment Program)                                17      16
New systems sold (units)                                            30      34
Used systems sold (units)                                            4       4
Net bookings, excluding EUV                                      1,415   1,065
Net bookings, excluding EUV (units)                                 51      38
ASP of booked systems, excluding EUV                              27.7    28.0
Systems backlog, excluding EUV                                   1,838   1,395
Systems backlog, excluding EUV (units)                              59      42
Gross profit                                                       531     482
Gross margin (%)                                                  40.3    40.6
Net income                                                         193     221
EPS (in euro)                                                     0.44    0.52
End-quarter cash and cash equivalents and short-term             2,724   2,351
investments

CEO Statement
"ASML's third-quarter sales and gross margin are in line with our previous
guidance and were mainly driven by sales to logic customers, who continue to
place orders as they fulfill their lithography capacity and technology needs
with our leading-edge immersion scanners and Holistic Lithography products
that are growing towards 10 percent of sales. Our first TWINSCAN NXT:1970Ci
was shipped in the quarter. It delivers record productivity of above 250
wafers per hour and is optimally suited to multiple patterning at the 20/14
nanometer node, supporting our customers' cost and technology roadmaps. As
expected, we have seen healthy bookings for our advanced products from memory
customers, driven by DRAM technology upgrades and additional NAND capacity.
Therefore, we see demand in the first half of 2014 at a level consistent with
our H2 2013 net sales, excluding additional Extreme Ultraviolet (EUV) system
sales which are incremental until insertion into volume production. The
integration work on our NXE:3300B EUV scanners is progressing steadily. We
remain on target to deliver systems with a throughput of 70 wafers per hour
next year, upgradeable to 125 wafers per hour in 2015. Based on the progress
over the last few quarters, customers have intensified their cooperation with
us, allocating investments and resources focused on potential insertion of EUV
at the 10nm logic node," said ASML President and Chief Executive Officer Peter
Wennink.

Third Quarter 2013 Product Highlights

  *Our new TWINSCAN NXT:1970Ci system offers overlay below 2 nanometers,
    focus control of less than 20 nanometers and productivity of more than 250
    wafers per hour. About 250 TWINSCAN NXT:1950i and NXT:1960Bi systems
    currently in use by our customers are field-upgradeable to the same
    performance level.
  *We have shipped the 100th YieldStar metrology system, which generates data
    for our Holistic Lithography products that control overlay, CD and focus
    for the most advanced process nodes of our customers.
  *We are installing the first NXE:3300B systems at customer sites and plan
    to ship a total of three systems this year.
  *In imaging tests, the NXE:3300B met the production requirements of the 10
    nanometer logic node in imaging of lines and spaces and other critical
    exposure features, and it will be extendable to the 7 nanometer logic
    node.

Outlook

  *For the fourth quarter of 2013, ASML expects net sales of around EUR 1.8
    billion, a gross margin of 43-44 percent, R&D costs of about EUR 255
    million, other income of EUR 17 million -- which consists of contributions
    from participants of the Customer Co-Investment Program -- and SG&A costs
    of about EUR 90 million.
  *The expected fourth-quarter gross margin of between 43 and 44 percent
    includes an impact from non-cash purchase price accounting adjustments
    related to the Cymer acquisition, equivalent to a gross margin impact of
    about 1.6 percentage points.
  *In the fourth quarter we expect to recognize revenue for one of the three
    NXE:3300B EUV systems that we expect to ship this year. The first series
    of such systems will not contribute to profit due to the low utilization
    of our EUV manufacturing infrastructure and early learning curve costs in
    our supply chain and, directly resulting from the Cymer acquisition, the
    cost of the liability to upgrade the first 11 EUV sources in the field,
    which is now assumed by ASML. Excluding the one NXE:3300B, the Q4 gross
    margin would be 1.6 percent higher.

Update Share Buy Back Program
As part of ASML's policy to return excess cash to shareholders through
dividend and regularly timed share buy-backs, ASML has announced its intention
to purchase up to EUR 1.0 billion of its own shares within the 2013-2014
timeframe. Through 30 September 2013, ASML has acquired 2.2 million shares
under this program for total consideration of EUR 136.3 million. The
repurchased shares will be cancelled. All transactions under the buy-back
programs are published on ASML's website (www.asml.com/investors). The share
buy-back program may be suspended, modified or discontinued at any time.

About ASML
ASML makes possible affordable microelectronics that improve the quality of
life. ASML invents and develops complex technology for high-tech lithography
machines for the semiconductor industry. ASML's guiding principle is
continuing Moore's Law towards ever smaller, cheaper, more powerful and
energy-efficient semiconductors. Our success is based on three pillars:
technology leadership combined with customer and supplier intimacy, highly
efficient processes and entrepreneurial people. We are a multinational company
with over 70 locations in 16 countries, headquartered in Veldhoven, the
Netherlands. We employ more than 13,000 people on payroll and flexible
contracts (expressed in full time equivalents). Our company is an inspiring
place where employees work, meet, learn and share. ASML is traded on Euronext
Amsterdam and NASDAQ under the symbol ASML. More information about ASML, our
products and technology, and career opportunities is available on:
www.asml.com

Investor and Media Conference Call
A conference call for investors and media will be hosted by CEO Peter Wennink
at 15:00 PM Central European Time / 09:00 AM Eastern U.S. time. Dial-in
numbers are: in the Netherlands + 31 20 794 8484 and the US + 1 480 629 9856
(no confirmation code needed). Listen-only access is also available via
www.asml.com
A replay of the Investor and Media Call will be available on www.asml.com

US GAAP and IFRS Financial Reporting
ASML's primary accounting standard for quarterly earnings releases and annual
reports is US GAAP, the accounting principles generally accepted in the United
States of America. Quarterly US GAAP consolidated statements of operations,
consolidated statements of cash flows and consolidated balance sheets, and a
reconciliation of net income and equity from US GAAP to IFRS as adopted by the
EU ('IFRS')are available on www.asml.com

In addition to reporting financial figures in accordance with US GAAP, ASML
also reports financial figures in accordance with IFRS for statutory purposes.
The most significant differences between US GAAP and IFRS that affect ASML
concern the capitalization of certain product development costs, the
accounting of share-based payment plans and the accounting of income taxes.
ASML's quarterly IFRS consolidated statement of profit or loss, consolidated
statement of cash flows, consolidated statement of financial position and a
reconciliation of net income and equity from US GAAP to IFRS are available on
www.asml.com

The consolidated balance sheets of ASML Holding N.V. as of 29 September 2013,
the related consolidated statements of operations and consolidated statements
of cash flows for the quarter ended 29 September 2013 as presented in this
press release are unaudited.

Regulated Information
This press release, the US GAAP consolidated financial statements and the IFRS
consolidated financial statements published on www.asml.com comprise regulated
information within the meaning of the Dutch Financial Markets Supervision Act
(Wet op het financieel toezicht).

Forward Looking Statements
"Safe Harbor" Statement under the US Private Securities Litigation Reform Act
of 1995: the matters discussed in this document may include forward-looking
statements, including statements made about our outlook, expected sales
levels, realization of systems backlog, IC unit demand, expected financial
results, gross margin and expenses, expected impact and adjustments relating
to the Cymer acquisition (including purchase price allocation adjustments),
the number of EUV systems expected to be shipped and recognized in revenue and
timing of shipments, dividend policy and intention to repurchase shares. These
forward looking statements are subject to risks and uncertainties including,
but not limited to: economic conditions, product demand and semiconductor
equipment industry capacity, worldwide demand and manufacturing capacity
utilization for semiconductors (the principal product of our customer base),
including the impact of general economic conditions on consumer confidence and
demand for our customers' products, competitive products and pricing, the
impact of manufacturing efficiencies and capacity constraints, the continuing
success of technology advances and the related pace of new product development
and customer acceptance of new products, our ability to enforce patents and
protect intellectual property rights, the risk of intellectual property
litigation, availability of raw materials and critical manufacturing
equipment, trade environment, changes in exchange rates, available cash,
distributable reserves for dividend payments and share repurchases, our
ability to successfully integrate Cymer and the amounts of adjustments
ultimately recognized in connection with the Cymer acquisition, and other
risks indicated in the risk factors included in ASML's Annual Report on Form
20-F and other filings with the US Securities and Exchange Commission.

Link to Consolidated Financial Statements
Link to Press Release

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Source: ASML Holding via Thomson Reuters ONE
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